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More than 81 percent of taxable adults and businesses in Nigeria do not pay their income taxes due to low tax moral in the country, the Nigeria Governors’ Forum (NGF) has learnt.  This was disclosed in a presentation made by Research Director of the Fiscal Policy Roundtable of the Nigeria Economic Summit Group, NESG, Tayo Oyedele, yesterday (Wednesday) at the Nigeria Governors’ Forum Secretariat in Abuja. Oyedele, who was in the company of the Chairman of the Fiscal Policy Roundtable, Sarah Alade, had paid a courtesy call on the Director-General of the Nigeria Governors’ Forum, Asishana Bayo Okauru, to solicit an opportunity to expose this sour narrative to the nation’s governors and seek their involvement to correct the ills that are denying the country of its collectible revenues.  Oyedele, who condemned the apathy of Nigerians on payment of taxes, said figures available to him reveal that there were 20 million registered taxpayers in the country, scoffing at the figure which seems paltry compared to the presumed nation’s population of nearly 200 million people.  While explaining the concept and reasons adduced to the nation’s low tax moral, the NESG boss disclosed, however, that nearly 85 percent of those who deem it unnecessary to pay taxes to the government willingly pay same to “non-government actors”.  This ironic twist, the NESG attributed to the distrust that pervades the environment when it comes to paying taxes, dues, and levies to a government that does not command the public trust.  Of the tiers of government on whose shoulders tax collection is placed, the research showed that local councils and their officials are among the most untrustworthy, followed by state governments and then the tax officials themselves.  “Many believe that it is unwise to pay taxes to entities that do not translate taxes to services or to officials who diverted same to personal use,” Oyedele stated while insisting that there were nonetheless 17 percent of the population who see the payment of taxes as a civic duty which all must perform.  Maintaining that there were 354 taxes in Nigeria, which create duplicity of taxes and favoritism on where to audit and where not to audit, not minding the unprofessional conduct of tax collectors, who sometimes threaten the public, NESG also regretted that the penalties for non-payment of taxes in Nigeria were not only unhurtful and not punitive enough, but that the processes of penalizing reluctant taxpayers were selective.  The NESG, therefore, recommended that it would have been better if the country minimized the tax regimes of the country from 354 to only 10, abrogating meaningless taxes as the ozone layer tax which the population can hardly understand.  According to the research, as narrated by the NESG, personal income taxpayers would have been happier to pay their taxes if education, health, and infrastructural provision were raised to global standards, while corporate taxpayers would love to see electricity, roads, and security improved.   Source: Sahara report

The Plateau State Board of Internal Revenue has generated N10. 7 billion between January and July 2019. Dashe Ariat, chairman of the board told journalist that this geometric increase came through a lot of efforts. ” We now meet the tax payers at their doorsteps, not waiting for them to come to us as it used to be. We have also recovered a backlog of revenue not remitted by tax audits and deliberately meeting taxpayers. There have been a lot of payments coming in through recovery.” “We have had effective collaborations with Ministries like Lands and Survey in April, their IGR has increased also, we are on the move. With the matching order of the governor on June 12, when he emphasised on three pillar policy and with economic rebirth as number three, we felt we cannot sit down and wait but we will work hard to ensure that the revenue surpasses the budget that was declared. N18bn was declared for the State entirely with the Service having N12bn as a component of it. We are already on N10.7bn.” Arlat further disclosed that in order for the target to be met, the state revenue service will be meeting with the tertiary institutions, Jos Metropolitan Development Board, ministry of agric, ministry of lands and survey and other ministries to make collaborative efforts. “There are a lot of gaps that are there and we know that we are not yet able to tap them especially in the transport sector of the economy. There are areas there that many of the owners of commercial transports are not on our searchlight, the drivers are not there as well as penalties for offenders on the road.” “You can see that people park in the town indiscriminately, we have met with the enforcers like the Road Safety and VIO to ensure that everywhere is orderly and by that, any defaulter would be a revenue base for us” he noted. “I am making reference to all sorts of vehicles especially the trucks that come into Jos and go out of Jos. Luxury buses that come into Jos and go out. We discovered that they don’t have parks for us to be able to get revenue. People turn the frontage of their homes to parks, most of the luxury buses going to Lagos and the Eastern part of Nigeria, they don’t have parks that government can hold unto that yes, you have to park here and pay us revenue.” Arlat who said the vehicle owner may be taxed N500 per day or N1000 for parking for more than a day said “We are working on creating parks for them through the Ministry of Transport to ensure that there are parks especially for the trucks which are causing menace to other road users. The drivers park, taking over one lane of the road completely, causing accidents, we have already secure places; Marahaban Ja’ama, Zaria Road, Bauchi Road, the former JIB, there is a very large parking space there. We are removing the trucks to those places, we have met with their union and they have agreed because they have already seen the need for that.” He also said street naming and house numbering will generate revenue as he disclosed that “80% of houses in Jos are not numbered, we don’t even have street names for the streets, we are embarking on streets naming and numbering of houses to ensure that the pay the ground rent adequately. There are also some other revenue that is associated with land issues and property; this year, we are moving in collaboration with all the Ministry to ensure that we get this revenue”.   Source: Business Live

The Federal Inland Revenue Service (FIRS) is empowered to assess and collect established tax liabilities from entities. The tax laws also empowered the tax authority to charge and collected administrative penalties such late returns penalty, penalty late payment, etc. Tax Authorities do not have powers to impose taxes, only a court of law can impose taxes, fines or charges upon conviction. Where there is an established tax liability against an entity or the tax liability assessed against an entity has become final and conclusive, but the entity failed to defray the tax liability, the Tax Authority can appoint any person or institution (e.g. banks) as an agent to collect the unpaid tax on its behalf from the entity. Also, an established tax liability (Companies Income Tax (CIT), Tertiary Education Tax (TET), Capital Gains Tax (CGT), Value Added Tax (VAT) and Withholding Tax (WHT)), of an entity can be recovered from:     the entity – e.g. XYZ LTD.     the any principal officer of the entity – e.g. Managing Director, CEO, etc.     the any person appointed by the entity as attorney, factor, agent or a representative.     a receiver or liquidator. While entities are to comply with the provisions of the tax laws in terms of filing and payment of taxes, it is important to state that, no Tax Authority has powers or right to place lien on the bank account of an entity where a tax liability is yet to be established or when a tax liability is in dispute.   Source: Punch

The President, Coker Building Materials and Allied Products, Mr. Justin Okpani, has said that his administration inherited disunited union at inception. He observed that traders in Coker Building Materials Market were solving their problems individually making the ability to have some of them resolved in their favour near impossible. Speaking exclusively to PropertyMart at the inauguration of the new executive at the market, Okpani who also doubles as the Managing Director of Joemed Global Concepts Ltd, returned with his team for a second term said they inherited various taxes and levies imposed on members of the union by the Local Government. He said, the union under his presidency contested the taxes and levies which were new with the local government but because the union was not as united as it should, the matter was settled in favour of the government. According to him, those taxes and levels vis-avis the fact that they were not how they used to be, was not acceptable to the union. “They kept collecting the double taxes and we took it upon ourselves to meet with them to discuss. Although, they eventually had their way, the Union did not find it funny. Another time was when there was increase in what we pay as trade permit. There was a 70 per cent increase which we also took up and discussed with the government authorities to reduce it to a reasonable amount so as to cut down the challenges we face in the market with regards to Nigeria’s current economic status. They again did not oblige us because they had their way, so it has remained like that,”he said. While fielding questions from PropertyMart on the handling of fake product merchants, the President said, Coker Building Materials traders are known for bringing in quality products. “Our major suppliers are from China. Initially, it used to be from Italy but because of the cost of Italian products, many people have now moved to China where the cost of production is relatively cheap. But then, all our products come here with good standards and they go through the Standards Organisation of Nigeria (SON) for testing. When it comes to standards, we are known for standard products. Yes, once in a while people from other markets bring in products that are substandards. Even the Chinese do import substandard products in the market and warehouse them and be coming to us to patronize them. But the Union through the Taskforce Unit always clamp down on them to see that such products do not penetrate into our own market,”he stated. In his respond, the Vice President of the Union and the Managing Director of Bluetech Limited, Mr. Oti Obinna while praying for the traders, said, “My advice to my colleagues in the market is for them to know that good name is better than riches. People should always do things knowing that their conscience should always guide them in whatever they do. It dose not stop at making money, it is about giving people, the teeming public, the customers; satisfaction for what they have paid for and then avoid cutting corners here and there, because the law will still catch up with whoever that does. Therefore, it is good for every trader to be upright in his business and do that which is genuine in the sight of God and sight of the law. “I want to tell my colleagues in the market is to tell them to be up and doing. “Be truthful in whatever things you are doing. Depending on your ability, try and be truthful and get that trust of your customers. Just be reliable so people will always believe you and trust that you are giving them your best,”he concluded.   Source: the sun

Online rental giant Airbnb has renewed calls for capital gains tax reform to better promote a “fair go”, in an appeal to the Morrison government’s commitment to aspiration. Airbnb said expats living overseas are allowed to rent out properties full time for years, but Airbnb hosts risked losing the capital gains tax exemption that applies to family homes for sharing a room for a single night. “The ‘fair go’ is the Morrison government’s north star, and it should consider redressing this tax on aspiration,” said Airbnb Asia Pacific regional policy director Brent Thomas. In 2017, a Board of Taxation report on tax and the sharing economy recommended the government consult on simplifying tax rules for the sale of properties used “to produce small amounts of income”. Owners could rent out their primary home for “a designated proportion of time” without losing the tax exemption under the plan. “Across the country scores of everyday Australians and families are having a go and becoming hospitality entrepreneurs,” Mr Thomas said. “Hosting on Airbnb helps local families earn extra income to ease the cost-of-living or pay the mortgage but at present parts of the tax system penalise – rather than promote – aspiration.” The Institute of Public Accountants’ Tony Greco said the problem was a common occurrence as the popularity of online sharing grew. “Most people plead ignorance when it comes to acknowledging that the usually exempt family home may be subject to capital gains tax if they have rented it out, especially if it is just one room in the house. “The treatment seems harsh when you can rent your home out for up to six years and not lose the main residence exemption.” He said a minor exemption wouldn’t cost the government much due to low levels of compliance. TaxBanter senior trainer Robyn Jacobson said it was a common misconception that if someone rented their home on Airbnb for a few days or weeks they can utilise the six-year absence rule and pay no tax when they sell their home. “The absence rule is available only if the dwelling ceases to be the main residence of the taxpayer; this means they have to cease living there, move out, remove their personal belongings, change their details on the electoral role, change address for utility notices,” she said. “In the case of someone who only vacates for a few weeks but leaves all their belongings there, and doesn’t change driver’s licence, electoral role, utilities, the six-year absence rule is not available. Instead, the taxpayer has to prorate the days it was rented and treat these days as taxable when they calculate the capital gain. Accordingly, only a partial main residence exemption will be available.” She said for tax assessment and deductions, Airbnb was no different to renting through a real estate agent.   Source: punch

More than 81 per cent of taxable adults and businesses in Nigeria do not pay their income taxes due to low tax moral in the country. The Research Director of the Fiscal Policy Roundtable of the Nigeria Economic Summit Group, Mr Tayo Oyedele, disclosed this in a presentation during a courtesy call on the Director General of the Nigeria Governors’ Forum, Mr Asishana Okauru. Oyedele was in the company with the Chairman of the Fiscal Policy Roundtable, Dr Sarah Alade, to solicit an opportunity to expose this sour point to the governors in order to seek their involvement to correct the ills that were denying the country of its collectible revenues.   Source: Punch